ENGIE (EPA:ENGI) - ENGIE - Impact and mitigation of Covid-19 pandemic - 01/04/2020

Transparency directive : regulatory news

01/04/2020 18:00

Press release

1 April 2020

Impact and mitigation of Covid-19 pandemic

Actions taken in response to the current health and economic crisis:

* Adaptation plan to protect employees and sustain ENGIE's essential services
* Strengthened liquidity position, reinforced by recent bond placement
* 2020 guidance withdrawn given continuing business uncertainties
* AGM schedule maintained; 2019 dividend cancelled
* Solid liquidity, operational strength and strategic intent to resume
dividends in future

Adaptation plan

In light of the ongoing global health crisis, ENGIE has put in place an
adaptation plan to ensure: (i) the health and safety of Group employees, their
families, and of those of our service providers, (ii) continuity of essential
internal and selected client operations, and (iii) limitation of financial
impacts and protection of financial liquidity.

ENGIE is committed to its clients' operational continuity and is providing
essential infrastructure support. All employees whose roles allow are working
from home, while many client-facing staff remain in the field to provide
essential energy supply and services. These operations are only maintained
subject to comprehensive health and safety protocols.

ENGIE continues to maintain one of the strongest balance sheets in its sector,
with EUR 16.4 billion of liquidity (net cash + undrawn credit facilities -
outstanding commercial papers) including EUR 8.6 billion of cash, as of end of
February. On March 20, the issuance of a triple tranche senior bond for a total
of EUR 2.5 billion further improved ENGIE's financial position.

ENGIE's executive leadership team - Claire Waysand, Judith Hartmann and Paulo
Almirante - collectively commented: "From the beginning of this unprecedented
crisis, we have implemented a comprehensive crisis management framework. We are
taking the required operational and financial initiatives to ensure our
continuation of essential services across our markets, while ensuring the
safety of our employees, and maintaining strong liquidity and a sound balance
sheet. The impact of the crisis on global supply chains, client operations and
demand has been progressive, exceeding previous expectations, while the
magnitude of impact varies by business line and is most pronounced in
labor-intensive client solutions areas. Looking ahead, we are confident that we
will together overcome this crisis and deliver for all our stakeholders in the
years to come."

2020 and 2022 guidance

The Covid-19 health crisis is having a significant impact on some of ENGIE's
customers and operations. As the impact on the Group's financial statements
remains at this stage unquantifiable and subject to uncertain assumptions
regarding the length and profile of this crisis, ENGIE is withdrawing its
previously stated 2020 guidance and will provide an updated view on its
consequent financial outlook to 2022 in due course.

The diversity of the Group's businesses is expected to result in a range of
Covid-19 impact levels. Financially, negative foreign exchange effects are
likely to impact accounts, particularly due to the reduced value of Brazilian
Real. Operationally, Networks is demonstrating resilience, facing moderate
volume timing effects and delays in selected maintenance investments. Thermal
and Nuclear operations are modestly impacted by price movements on unhedged
merchant power sales. Renewables operations are also impacted by such merchant
price movements as well as selected instances of operational, supply chain and
finance partnering constraints on capacity builds and sell-downs. Supply is
impacted by lower volumes and a potential increase in bad debts. Client
Solutions activities are more significantly impacted by client shutdowns,
project postponements and constraints related to staff health protection in
this labour-intensive business.

These impacts are being partly mitigated by actions to reduce operating
expenditures and adjust the timing of planned investments. Given its strong
balance sheet, operational excellence and diversified activities supporting the
energy transition, ENGIE is well positioned to resume growth once the crisis
has subsided.

2020 Annual General Meeting and 2019 dividend

ENGIE's Board of Directors decided today to cancel the payment of the EUR 0.80
dividend per share for 2019. ENGIE remains fully committed to resume paying
dividends in the future.

Jean-Pierre Clamadieu, Chairman of the Board, commented: "I would like to
recognize and thank all of our employees for their continuous commitment
throughout this evolving crisis. Our decision to cancel ENGIE's 2019 dividend
payment has been made in light of continuing uncertainties as to the depth and
duration of this unprecedented crisis, and will further strengthen Group's
operational flexibility. ENGIE has solid liquidity, resilient business model
and the strategic intent to resume dividend payments as soon as possible while
we continue to invest in our growth strategy. The Board of Directors is
confident in ENGIE's ability to return, at the end of this crisis, to a
sustainable growth trajectory."

The Shareholders' General Meeting will be held as planned on May 14, 2020, in a
remote format without physical attendance, to be announced shortly.

About ENGIE

Our group is a global reference in low-carbon energy and services. In response
to the urgency of climate change, our ambition is to become the world leader in
the zero carbon transition "as a service" for our customers, in particular
global companies and local authorities. We rely on our key activities
(renewable energy, gas, services) to offer competitive turnkey solutions.
With our 170,000 employees, our customers, partners and stakeholders, we are a
community of Imaginative Builders, committed every day to more harmonious
progress.
Turnover in 2019: 60.1 billion Euros. The Group is listed on the Paris and
Brussels stock exchanges (ENGI) and is represented in the main financial
indices (CAC 40, DJ Euro Stoxx 50, Euronext 100, FTSE Eurotop 100, MSCI Europe)
and non-financial indices (DJSI World, DJSI Europe and Euronext Vigeo Eiris -
World 120, Eurozone 120, Europe 120, France 20, CAC 40 Governance).

ENGIE HQ Press contact:

Tel. France: +33 (0)1 44 22 24 35
Email: engiepress@engie.com

ENGIEpress

Investor relations contact:
Tel.: +33 (0)1 44 22 66 29
Email: ir@engie.com

ENGIE Headquarters
Tower T1 -1 place Samuel de Champlain -Faubourg de l'Arche -92930 Paris La
Défense cedex -FranceENGIE A PLCWITH CAPITAL OF 2 435 285 011 EUROS -
RCS NANTERRE 542 107651-Tel. +33 (0)1 44 22 00 00

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